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…and 600 others was held at the Hartford Downtown Marriott yesterday and focused on the Econo-ME. Kristin Andree graciously extended the invitation to me and two other colleagues whom I was thrilled to meet: Dena Castricone, President of CABO and Trisha Gallagher of The Gallagher Group.
It felt good to dress up and hang out with another industry at an upscale venue. It broadens my perspective. The room was filled with men in suits, as this event was sponsored by Northwestern Mutual. John Schlifske, the Chairman and CEO, shared the dais with Steve Forbes and pitched the benefits of investing with Northwestern Mutual. “I paid for your lunch, so I get to do this,” he said tongue in cheek.
I thought I’d be out of my league in terms of the info being imparted, but I felt comfortable and intrigued. Here were a few of the notes I jotted down:
“Black Swan” (not the movie) – A term for something that happens in nature, but only rarely, like what’s going on now in Japan, for instance.
He said that we are experiencing the slowest recovery in the history of our country.
“Fear and greed ruin most people’s portfolios.”
He also recommended listening to your financial adviser as you would your personal trainer. They know what’s best for you, unlike your brother-in-law or friendly neighbor with a hot tip on the market.
“Don’t let your inbox dominate you. Be strategic rather than tactical.” (Or what I call being pro-active versus reactive.)
Here’s the last one which I need to chew on a bit: “Emotions are your enemy.”
Who wants to discuss that one?
I had to actually cut this image out of my AARP magazine issue this month to see, if indeed, the two shades of gray (A + B) were, as claimed, the same. They are. What changes our perception is that big green cylinder casting a shadow.The point of the illusion is ‘how bad our brains are at judging absolute values.’
It would be more symbolic if the cylinder were red and had the word DEBT inscribed on it. Because it is the nature of debt to alter perception to everything around it. As in this illustration, it makes A not look like B.
As a coach, I hear the debting issue often. It can present as, “I need to make more money” or “I can’t afford to…” Because debt exists, and the threshold depends on the individual, opportunities go unseen, fear replaces action and paralysis sets in.
My own debt threshold was $3000 in credit card debt back in 1996. I had enough to pay it off, but preferred the feeling of having that money in a savings account. Others are able to tolerate great amounts of debt. I’ve heard everything up to $8 million in debt. I don’t blink at the number of zeroes because the root cause is essentially the same.
I didn’t like the direction in which my debt was heading. Similar to the annual five pound weight gain, it crept along until I noticed I was getting fatter and that my monthly credit card payments were exceeding my spending quotas. I decided to do something about it. I paid off the $3000 and have never had a credit card balance since. In fact, I slowly went to 100% debit card usage in spite of the allure of airline points. I knew that I’d have more time to earn money if I stopped angst-ing over the debt issue and would be able to pay for flights without having to work the system. Have you ever calculated the hours lost to trying to book flights on points?
When debt or the green cylinder is in your way, you are not as available to see your options clearly. What you notice most of all is the debt. It can be blinding, terrifying and real. Solutions seem unreachable. Alternatives fade from view or hide in the shade. There’s just the DEBT and the fear mentality it fosters.
There is a solution, and it is to stop the debting behavior. Today.
My friend Doreen mentioned a sign she noticed while seated in a public space. After reading it, she did a double-take. It was a fire exit by the door whose message she immediately re-framed. As a business owner, she knows how critical it is to Keep Clear At All Times.
When she shared this with me, I had to laugh. Having seen similar signs for years, I never made the entrepreneurial connection to its message. Talk about ‘when the student is ready, the sign will appear.’
Here are the checkpoints I want to stay clear about at all times. Feel free to use what you choose.
- How much income do I have today? This month? Am I on target for this year?
- How many customers/clients do I have? What’s my goal for how many to serve?
- Do I know exactly what I’m offering to each of them?
- Whom do I owe money to and how much? And when is it due?
- Who owes me money?
- When are my (estimated) taxes due?
- How and how often am I reaching out to my market?
These are the thoughts that go through my brain on a regular basis. When I know the answers to all or most of them, I find myself at peace. When more than a few are unclear, I’m less comfortable. I like the simplicity of that sign and will hold it as a mantra now.
